Supplier is also customer. How do I allocate payments to supplier and credit note from supplier?
Our supplier is also a customer. At the end of the month we always owe them. They credit our account for invoices we have charged them. How do I set this up to show bills received from them, credits received from them and invoices we send supplier and payment we make each month for the balance owing?
Generally, when you have a supplier that is also a customer you would have a contra deal set up situation happening to reflect those transactions. I've included the recommended set up and process for that:
Setup: Create a holding/contra bank account
Business Name Menu (top right)>>Accounts>>Accounts Lists
Select Add new
Give the account a number, name, set the account type to be Banking and set a Tax rate (generally NTR) before selecting Save
Processing: Dealing with the sales/purchases
Go to Sales>>Take payments
Select the desired customer and set the Into account to be that newly created account
Process the transaction as per normal
Go to Purchases>>Pay bills
Select the supplier and set the From account to be that newly created account
Process the transaction for the desired amount as per normal
If there are amounts still owing to the supplier i.e. what you sold them hasn't covered what you brought from them, you would just process a Pay bills transaction as per normal with the desired bank account as the From account.
What the above process will do is place the payment amount of those sales into a holding account and then use that value to make payment on the purchases.